Buying Time Until Your Child Graduates

+Term life insurance is usually sold in 10, 20, and 30-year terms. If the policyholder passes away within the specified period, his declared beneficiaries are entitled to the proceeds of the insurance. The only problem with this setup is that nobody—not you, your family, or the life insurance company—knows when your time’s up.

With higher education in mind, parents often opt for term insurance if they are looking to ensure that their beneficiaries will be financially supported in the event of an untimely death that results in the parent not having enough time to save for their child’s future education.

Term insurance is a great way to ensure there are funds available to pay for your child’s education in the event you are no longer there. In today’s economy, kids need a good education to be successful whether it be university, college or the trades. As a primary earner of income for your family you can use term insurance as a contingency plan, you may not need to stay insured forever—just until your children graduate and land a job.

You can also renew term policies, but doing so might grow more expensive with age. To decide among 10, 20, and 30-year term life insurance plans, assess how long you want to be insured. A 20-year plan provides a balance of cost and coverage and might be sufficient.